According to a post on January 9, e-Money, a stablecoin project in the Cosmos ecosystem, said it would discontinue issuance of its euro stablecoin EURR starting March 6, 2023. Explaining the decision, e- Money wrote:
“The lack of real-world applications for blockchain has led to low demand for non-USD-denominated stablecoins. The upcoming European MiCA legislation is expected to hinder the scalability of euro-backed stablecoins and limit business opportunities in the sector The European MiCA legislation in its current form favors commercial banks as future issuers of euro stablecoins, which hurts innovation in the European Union.”
Until the deadline, Users can redeem their EEUR by exchanging their stablecoins for digital assets such as OSMO, ATOM, or USD Coin (USDC) on the decentralized exchange Cosmos Osmosis (OSMO). For amounts greater than 100,000 EEUR, e-Money recommends the direct exchange of euros with e-Money A/S. “This requires KYC/AML and should allow around 5 business days for processing. Please contact [email protected] to redeem using this option,” the firm wrote.
Important Announcement: EEUR Stablecoin Unwind
e-Money A/S has decided to cease issuance of its EUR-backed stablecoin
➡️All stablecoins remain fully backed and can be redeemed. Read our Medium post & select one of the listed redeem options ⤵️https://t.co/1yneUFrD7U
—e-Money (@emoney_com) January 9, 2023
e-Money was founded in 2017 on the Cosmos blockchain and launched its mainnet in early 2020. The company previously worked with the Financial Services Authority and Ernst & Young to “develop a transparent and compliant model for stablecoins that could adapt to negative interest rates in the Eurozone”. e-Money initially began issuing EEUR stablecoins in 2020 using Ethereum (ETH) bridge technology and later onboarded Cosmos and Axelar.
“The crypto industry faced many challenges in 2022, with both centralized and decentralized entities experiencing difficulties. While electronic money was not directly affected, the stablecoin business is highly dependent on integration with traditional finance, and interest of financial institutions in cryptocurrencies has decreased after the events of 2022″.
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